2. 2
Forward Looking Information
This presentation contains certain forward-looking information as defined in applicable securities laws (referred to herein as
“forward-looking statements”). Specifically, this presentation contains forward-looking statements regarding the
commencement of commercial production at the Detour Lake mine, 2013 guidance for gold production and total cash costs,
reserve and resource estimates, ore grade, expected mine life, average annual gold production, gold recovery, cash operating
costs and other costs, sensitivity to metal prices and other sensitivities, ramp-up of operations, mining rates reaching
approximately 200,000 tpd by year-end 2013, future operating plans, potential expansion opportunities, and plans for organic
growth which includes growing mineral reserves to more than 20 million ounces. Forward-looking statements involve known
and unknown risks, uncertainties and other factors which are beyond Detour Gold’s ability to predict or control and may cause
Detour Gold’s actual results, performance or achievements to be materially different from any of its future results, performance
or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but
are not limited to, gold price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological
data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and
exchange rate fluctuations, general economic conditions and other risks involved in the gold exploration and development
industry, as well as those risk factors discussed in the section entitled “Description of Business - Risk Factors” in Detour Gold’s
2012 AIF and in the continuous disclosure documents filed by Detour Gold on and available on SEDAR at www.sedar.com.
Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, including, but
not limited to, assumptions about the following: the availability of financing for exploration and development activities;
operating and capital costs; the Company’s ability to attract and retain skilled staff; the mine development schedule; sensitivity
to metal prices and other sensitivities; the supply and demand for, and the level and volatility of the price of, gold; timing of the
receipt of regulatory and governmental approvals for development projects and other operations; the supply and availability of
consumables and services; the exchange rates of the Canadian dollar to the U.S. dollar; energy and fuel costs; the accuracy of
reserve and resource estimates and the assumptions on which the reserve and resource estimates are based; market
competition; ongoing relations with employees and impacted communities and general business and economic conditions.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements
contained herein are made as of the date hereof, or such other date or dates specified in such statements. Detour Gold
undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a
result of new information or future events or otherwise, except as may be required by law. If the Company does update one or
more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or
other forward-looking statements.
3. 3
The mineral reserve and resource estimates reported in this presentation were prepared in accordance with Canadian
National Instrument 43-101Standards of Disclosure for Mineral Projects (“NI 43-101”), as required by Canadian securities
regulatory authorities. For United States reporting purposes, the United States Securities and Exchange Commission (“SEC”)
applies different standards in order to classify mineralization as a reserve. In particular, while the terms “measured,” “indicated”
and “inferred” mineral resources are required pursuant to NI 43-101, the SEC does not recognize such terms. Canadian
standards differ significantly from the requirements of the SEC. Investors are cautioned not to assume that any part or all of
the mineral deposits in these categories constitute or will ever be converted into reserves. In addition, “inferred” mineral
resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category.
Under Canadian securities laws, issuers must not make any disclosure of results of an economic analysis that includes
inferred mineral resources, except in rare cases.
On September 4, 2012, Detour Gold announced an updated mine production plan for the Detour Lake project. The NI 43-101
compliant Technical Report for this update was filed on SEDAR on October 18, 2012. The following QPs participated in this
update: BBA Inc., under the direction of André Allaire, Eng., Vice-President, Markets – Mining and Metals and Patrice Live,
Eng., Mining Manager; SGS Canada Inc., under the direction of Michel Dagbert, Eng., Senior Geostatistician and Maxime
Dupéré, P.Geo., Senior Geologist; and AMEC Environment & Infrastructure, a Division of AMEC Americas Limited, David G.
Ritchie M.Eng., P.Eng, Senior Associate Geotechnical Engineer.
NI-43 101 Disclosure
Information Containing Estimates of Mineral Reserves and Resources
4. 4
Focus and Discipline
Leverage to gold price
Optimize operation
Organic growth
Safe jurisdiction
Per Share Value Creation
Free cash flow growth
Limit share dilution
Return on capital
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
5. 5
Note: Cash position and share data at April 30, 2013. Conversion price for the Notes is
US$38.50.
Share Capital
FULLY DILUTED
138.9 M
OPTIONS & FN SHARE
COMMITMENTS
9.0 M
CONVERTIBLE
NOTES
13.0 M
ISSUED AND
OUTSTANDING
117.9M
C$1.4 B
C$128 M
TOPSHAREHOLDERS
MARKET CAP
CASH POSITION
PAULSON & CO: 15%
INSTITUTIONS TOTAL: >80%
6. 6
Focused on One Core Asset
Detour Lake - Ontario, Canada
Low-risk, safe mining jurisdiction
Large prospective land package of 566 km2 on Abitibi Greenstone Belt
› Detour Lake open pit mine – 15.6 M oz in reserves
› Significant potential to expand mineral resources
› Exploration upside
7. 7
PRODUCTION
2013
Record Timing from “Discovery” to Production
Detour Lake in 6 years
ACQUISITION
/DISCOVERY
PRE-FEASIBILITY
STUDY
FEASIBILITY
STUDY &
PERMITTING
DEVELOPMENT PRODUCTION
2007 2009 2010 2011-12 2013
From Core to Pour
8. 8
Scorecard Highlights
Delivered results in timely manner over last 6 years
Built strong management team with track record of success
Increased mineral resources by 750% since acquisition at <$5/oz
Completed positive economic studies over a 2-year period
Raised over $2 billion (equity + debt)
Completed mine construction on time (27 months)
Obtained strong community and Aboriginal support
Started gold production in Q1 2013
Focus
Q3 Q4
Strategy: ExecutionDiscipline
9. 9
Detour Lake in 6 Years
$105M
Mining Fleet
US$40M
Mining Fleet Trade Winds
Acquisition
SharePrice(C$)
35
30
25
20
15
10
5
0
40
GoldPrice(US$/oz)
1,650
1,300
950
600
2,000
2011 2012 20132007 2008 2009 2010
DGC Price
Gold Price
Project Advancement
Financing Activity
$35M
IPO
M&I Res.
4.8 M oz
$65M
BD
Mine
Development
Team
Expanded
$48M
BD
PFS
Reserves
8.8 M oz
FS
Reserves
11.4 M oz
$275M
BD
$282M
BD
Provincial
Permits
US$500M
Debt
Reserves
14.9M oz
$428M
BD
$10M
Flow Through
$277M
BD
Reserves
15.6M oz
$106M
BD
First
Gold
Pour
Revised
Mine
Production
Plan
M&I Res.
10.8 M oz
$135M
Debt
10. 10
2012 Achievements
Q1 Q2 Q3 Q4
$150M CAT
financing
$277M bought deal
IBA with Métis
$106M bought deal
Corporate
60% complete
Mineral reserve
update
97% complete
Start of mill
commissioning
Tailing dam first cell lift
Ore stockpile of
2.2 Mt @ 0.8 g/t
Detour Lake
Construction (1)
75% complete
230 kV power line
complete
92% complete
230 kV power line
connected to grid
Updated mine
production plan
Regional 5,067 m
drilling program
Block A 50,000m
drilling program
completed
Exploration
231 462Employee # (2)
309 381
2012
1. Completion mark at end of each quarter.
2. Full-time DGC employees at end of each quarter.
11. 11
H1 2013
First gold pour in February
Secured $90 million credit facility
Commissioned second production line
25,000 m drilling program targeting high-grade
gold mineralization
H2 2013
Achieving commercial production in Q3
Gold production target of between 260,000 and
320,000 ounces for the year
Year-end mineral resources/reserves update
2013 Objectives
12. 12
Focus on health and safety of our employees, the well-being of
our community and the protection of the natural environment
Hiring in the region, giving priority to local Aboriginal communities:
95% of workforce from region
28% are Aboriginals
Scholarship and job training
Supporting local communities
Business opportunities
Participation in municipal development
Corporate philanthropy
NORTHERN
ONTARIO
44%
COCHRANE
25%
COCHRANE
AREA
26%
REST OF
ONTARIO
3%
2%
OTHER
Corporate Responsibility
WORKFORCE ORIGIN
13. 13
OP reserves (M oz) 15.6
Mill throughput (tpd) 55,000
Strip ratio (waste:ore) 3.7
Gold recoveries 91%
Average grade (g/t) 1.03
Estimated mine life (yrs) 21.5
Avg. production (oz/yr) 657,000
Initial capex (C$ B) 1.5
Sustaining capex (C$ B) 1.2
Detour Lake Mine at a Glance
Gold production started in February 2013
14. 14
MAINTENANCE
LABOUR
POWER
DIESEL
G&A
ROYALTY+
OTHER
(2% NSR)
CONSUMABLES
29%
22%
18%
12%
8%
5%
6%
Breakdown of 2013-14 TCC
Operating Costs (LOM) C$/t milled C$/t mined C$/oz
Mining costs 11.65 2.49 388
Processing cost 7.83 -- 260
G&A 1.86 -- 62
Cash operating costs 21.34 -- 710
Royalty (2%) and other 1.26 -- 42
Refining 0.12 -- 4
Silver credit (0.20) -- (7)
Total cash costs (TCC) 22.52 -- 749
A 10% change in:
Diesel or power costs = $9/oz change in TCC
Cdn$ FX rate = $63/oz in TCC
Projected LOM Operating Costs
15. 15
2013 Ramp Up
Mining
Current stockpiles:
2.6 Mt grading 0.7 g/t
1.6 Mt grading 0.4 g/t
Mining rates to ~200,000 tpd by
year-end
Mining fleet of 20 haul trucks &
4 shovels
Processing Plant
55,000 tpd conventional gravity and
CIP processing plant with two
production lines
Line 1 & 2 in operation
Optimize and improve efficiencies
16. 16
PLANT SITE
CAMPBELL
PIT
APPROX. PIT SHELL
AT END OF LOM
CURRENT
PIT SHAPE
MINERALIZED
ZONE
Satellite image dated July 2012
NORTH WASTE
DUMP
Mining Production
18. 18
Q1 2013
Ore tonnes mined (Mt) 1.29
Tonnes milled (Mt) 1.02
Mill grade (g/t Au) 0.64
Recovery (%) 80
Availability (%) (1) 66
Gold produced (oz) (2) 16,841
Q1 Operation Statistics
(1) Quarterly period starting on January 12 with
first production line and on March 9 with second
production line. Availability averaged 70% for
both production lines in the last week of March.
(2) 7,300 oz poured and 9,541 oz of plant
inventory.
19. 19
2013 Guidance
2013 Revised Guidance
Total gold production of 260,000 to
320,000 oz
Post commercial production (Q3):
Total cash costs of C$800 to
C$1,000/oz
Sustaining capital: C$180 M
($45 M incurred in Q1)
Commercial production target in Q3
NOTE: Commercial production to be declared after 60
consecutive days of operating at >75% of throughput
(55,000 tpd x 75% = 41,250 tpd)
21. 21
Grow reserve base to +20 M oz
Reserve/resource update for Detour
Lake mine
Evaluate Detour Lake mine expansion
and Block A
Large prospective land position of
566 km2
Tested gold targets on structures
south of Detour Lake: 25,000 m
completed (partial results received)
Inferred M&I P&P
10M oz
20M oz
30M oz
15.6
14.9
11.4
8.8
Organic Growth Opportunities
22. 22
Near-term objectives (1-3 years):
Detour Lake reserve/resource update (open pit west expansion)
Block A resource update
Evaluation of potential expansion options
Organic Growth Opportunities
23. 23
*Note: Excludes drilling around Detour Lake and M zone (Block A).
25,000 m
in 2013
15.6 M oz in Reserves
Organic Growth Opportunities
Exploration
South Structure
24. 24
25,000 m
in 2013
15.6 M oz in Reserves
20.1g/t/4.5m
Organic Growth Opportunities
Exploration
South Structure
25. 25
Focus and Discipline
Leverage to gold price
Optimize operation
Organic growth
Safe jurisdiction
Per Share Value Creation
Free cash flow growth
Limit share dilution
Return on capital
Invest in Detour Gold
Our Vision
Become a leading intermediate gold producer and
premier investment opportunity
26. 26
People Who Make Things Happen Succeed.
This is all of us at Detour Gold!
Thank you for your support.
Editor's Notes
Changes were approved by JG.
No change.
Greetings to audience and thanks to BMO for hosting conference.I’m very excited to be here and to talk to you about Detour Gold, as it’s a rather unique story and a compelling investment opportunity.On February 18th, we poured our first bars of gold which formally transitioned us from a being a mine developer to a gold producer. It’s a milestone that I’m very proud to have witnessed, especially since the Company was only started six years ago.As we execute on our corporate objectives and reach future milestones, I see Detour Gold having the chance to become a leading intermediate gold producer and a premier investment opportunity for the following reasons:Size of our reserves and resources is world-classForecast annual production levels gives us a meaningful play on goldOrganic growth potential is excellentBeing located in Ontario / Canada brings stability to the fiscal and permitting regimes and ready access to infrastructure and labour marketsAnd lastly, we are fortunate to be supported by a Board of Directors and Management team that has decades of success and experience in the gold industry and is focused on generating returns for our shareholders.
Discuss how do we intend to generate returns for our investors:A key to our future success is what we have done to datekeep our share count low so that we offer leverage to the gold price from production, adding new resources, converting resources into reserves and generating free cash flow, all on a per share basis. Those last three words are what investors are looking for and what will differentiate us from others in the sector: Per share Basis that gives superior leverage to the gold price and to growth opportunities in the company.We currently have 118 million shares issued and outstanding which gives us a market capitalization of $2.5 billion.
Introduction to DGC only asset but indicating opportunities for further development and exploration.Points to mention:Large land package in northern Ontario covering under-explored Abitibi greenstone belt.Size of the property at 566 km2 is equivalent to the size of entire Timmins camp. While not quite as prolific as the entire Timmins camp yet, it hosts a gold endowment of 30 million ounces with plenty of opportunity to grow this figure.Start small and finish big! The Detour Lake Mine is a large producing asset that gives us a platform for nearby growth from Block A (adjacent to Detour Lake open pit) and exploring for high grade gold mineralization on the property (trucking distance to existing processing facilities).As we say in the business, the best place to find gold is where we’ve found it before, so the fact that we own 100% of this land package is another advantage, as we get 100% of the exploration upside.
The success that Detour Gold has enjoyed to date rarely happens this quickly in the gold industry anymore.In 6 years, it has gone from a brownfield site to a world-class mining operation employing over 400 full-time employees.It was the drive, dedication and focus of the team that took the project thru the pre-feasibility and feasibility studies, permitting , construction and now production, and many of these employees are still with us.Our shareholders have been incredibly supportive. They entrusted their capital with us and allowed the project to be built. And over that time, they’ve seen growth in reserves and resources and are now looking forward to gold production.As well, the relationships we have with the First Nations communities and local communities has clearly been a benefit for all.
Detour Gold has consistently delivered results: Review of points mentioned in slide.Since the acquisition of Detour Lake, management is focused on execution and delivering results.We have gradually built a strong management team with operating experience and a track record of success.We have increased the resource base by 750%, mostly by successful drilling campaigns at a cost of <$5/oz.Bi mid-2010, we had a positive feasibility study, audited by independent consultants and by year-end with provincial permits in place , we started construction.Here we are today, in production with the first gold pour on February 18, 2013.
Introduction to DGC only asset but indicating opportunities for further development and exploration.Points to mention:Large land package in northern Ontario covering under-explored Abitibi greenstone belt.Size of the property at 566 km2 is equivalent to the size of entire Timmins camp. While not quite as prolific as the entire Timmins camp yet, it hosts a gold endowment of 30 million ounces with plenty of opportunity to grow this figure.Start small and finish big! The Detour Lake Mine is a large producing asset that gives us a platform for nearby growth from Block A (adjacent to Detour Lake open pit) and exploring for high grade gold mineralization on the property (trucking distance to existing processing facilities).As we say in the business, the best place to find gold is where we’ve found it before, so the fact that we own 100% of this land package is another advantage, as we get 100% of the exploration upside.
Exploration slide simplified to show pipeline. Graphic from next slide to be added to indicate our success in finding ounces.
Review main objectives and milestones for 2013.Emphasize the ramp up for first six months. Current focus is the ramp up of Line 1 to achieve nameplate and start commissioning Line 2 in March. The Company should be in a position to declare commercial production in early Q3 and by year-end reach design throughput. We still plan the year with a gold production target of +350,000 ounces.The $90 million credit facility is expected to be in place in April 2013 should we need to drawdown.Our objective is to further advance our evaluation of a potential mine expansion, which will include model revisions for the Detour Lake mine and pre-feasibility study for Block A. Exploration remains a priority with 20,000 m planned for 2013.
Without the support of the local communities including First Nations and Metis, we would not be where we are today.We are currently implementing four Aboriginal agreements with a strong focus on training and job creation.Figures to use if needed:$1.4 M in scholarship commitments to date$8.1 M in training funding (prov. and fed.)$450,000 in Aboriginal cultural funding$400 M in Aboriginal JV business during construction phaseWe employ over 400 people at site, of which 95% are from the region and northern Ontario. The town of Cochrane, closest community to the mine site, is our base. Our objective is maximize economic opportunities for the region and bring meaningful long-term socio-economic benefits for all of us.INTRODUCE GOLD POUR VIDEO
The Detour Lake Mine is a world-class gold deposit. It currently hosts 15.6 million ozs of proven and probable reserves, and we are confident that there will be more additions in the years to come.With gold resources totaling nearly 30 million ozs, it ranks among the super-giant deposits in the world, where there have only been 50 [GP knows the #] deposits of this size discovered in all of history.The mill was built with an initial throughput capacity of 55,000 tpd using conventional crushing, grinding and CIP leaching .On average, over the 21.5 year LOM production, we expect to produce over 657,000 ozs of gold per year.And at a capital cost of $1.5 billion (equivalent to approx. $100/oz based on the current reserves), this is very attractive given the capital required to bring new production on stream in this environment.
This slide shows the breakdown of our LOM operating costs which we expect will average about $750/oz. While Detour Lake is a low-grade gold deposit, our total cash costs are competitive and we estimate that we are close to the 50th percentile on global cash costs.We do see cost pressure on both labour and consumables (making 47% our total costs for 2013-14). We are working with the province of Ontario to obtain long-term contracts for power as currently our costs are approx. 8 cents per kwh.Almost, all our opex is Canadian $ denominated, so we intend to put in place a currency hedging program to mitigate cost increases from further strengthening of the Cad$.
Review of the ramp up for both mining and milling.
Location of current mining activities and closeness to plant facilities and waste stockpiles.If we are going to use this slide, I think GP should have a laser pointer and point out a few physical locations on the slide and give approx. distance of pit to mill; location of former Campbell pit; Block A; tailings to the east; permanent camp 4-5 km to the west.**Will look into replacing this slide with a better schematic**
The Detour Lake Mine is a world-class gold deposit. It currently hosts 15.6 million ozs of proven and probable reserves, and we are confident that there will be more additions in the years to come.With gold resources totaling nearly 30 million ozs, it ranks among the super-giant deposits in the world, where there have only been 50 [GP knows the #] deposits of this size discovered in all of history.The mill was built with an initial throughput capacity of 55,000 tpd using conventional crushing, grinding and CIP leaching .On average, over the 21.5 year LOM production, we expect to produce over 657,000 ozs of gold per year.And at a capital cost of $1.5 billion (equivalent to approx. $100/oz based on the current reserves), this is very attractive given the capital required to bring new production on stream in this environment.
Review of 2013 guidance.
Detour Lake’s metallurgy is simple as over 98% of the gold is free. We anticipate over 91% gold recovery rate.Processing plant is a conventional gravity and CIP plant.Since day one we opted to build two independent grinding lines as a “safety” net measurePlant is also designed for a potential expansion (additional capacity in primary crusher)
What is next after Detour Lake mine? Company’s cost to find ounces (resources) has been <$5/oz with successful conversion of inferred resources into reserves.Discuss briefly Growth opportunities:Block AExpansion to >75,000 tpdExploration for HG gold mineralization (transport ore to existing plant).
Greetings to audience and thanks to BMO for hosting conference.I’m very excited to be here and to talk to you about Detour Gold, as it’s a rather unique story and a compelling investment opportunity.On February 18th, we poured our first bars of gold which formally transitioned us from a being a mine developer to a gold producer. It’s a milestone that I’m very proud to have witnessed, especially since the Company was only started six years ago.As we execute on our corporate objectives and reach future milestones, I see Detour Gold having the chance to become a leading intermediate gold producer and a premier investment opportunity for the following reasons:Size of our reserves and resources is world-classForecast annual production levels gives us a meaningful play on goldOrganic growth potential is excellentBeing located in Ontario / Canada brings stability to the fiscal and permitting regimes and ready access to infrastructure and labour marketsAnd lastly, we are fortunate to be supported by a Board of Directors and Management team that has decades of success and experience in the gold industry and is focused on generating returns for our shareholders.
Thank you.Conclusion points:Detour Gold’s management is focus and disciplined.2013 objective is the successful ramp up of Detour Lake mineDetour Lake has the potential to generate significant free cash flow over the LOM. We will evaluate opportunities for shareholder benefits:Repay debtCapital requirementsExploration effortsEstablish dividend policyAcquisitions